In e-commerce, price competition can be complicated than it seems. Knowing the prices of your competitor and making necessary changes make you able to fix your prices accordingly, however there are three mistakes you should be aware of when it comes to the pricing.
What are the three mistakes of online pricing?
- Under pricing your products: Making sales and reducing the prices of certain products may seem like a good way to gather the attention of potential customers. However making a strategy that ignores the costs, shipping costs and VAT expenses can be crucially wrong. Going underprice may not me the greatest way to attract a customer, if it is causing a deficit. Pricing softwares like Pricerest can reflect the pricing points for your strategy and make you benefit from the information of your competitors’ prices for a better sales strategy.
- Copying your competitor’s prices: Knowing your competitor’s prices is one thing, copying their strategy is another. Just going with the strategy of your competitor all the time is not going to make you profit in e-commerce. Price points are effective in a certain point in your sales for potential customers, however they are not enough for you to make profits. Changing the prices in a drastic manner to compete with your rivals by the information of their strategy may result differently. These kind of differences can cause potential customers to mistrust your products. Pricing software can make you see the strategies of others and keep you in competition with providing you information about others as well as yours. To keep up with the competition, you have to build trust between your brand and your customers. To make that trust stronger is coming with a brand strategy which is not copying others.
- Modifying prices before sales: In online shopping experiences, people have tendencies to keep up with the prices before the sales, so they can calculate the difference between the actual price and sales price. That’s why in the shopping seasons like Black Friday, we can clearly see that people are having mistrusts to some brands. Changing the price points higher right before the campaigns or sales is a bad idea that affects the trust bond between your brand and your customers.
These are the three mistakes that affect the whole pricing strategy of a brand in general.
Lack of information and strategy can make you more mistakes in e-commerce.
To keep this situation under control, you can utilize pricing software like PriceRest.
Pricing subject for e-commerce requires a great deal of pricing strategy that evolved from a gathered data of e-commerce competition. Having the right kind of information regarding to your competitor’s actions can make a difference.
To build up a strategy that is being shaped by online information, PriceRest can help you.